Minnesota Legislature
SF 2750
5th Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
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A bill for an act
relating to eminent domain; making changes to and regulating the exercise
of eminent domain; providing for public use or purpose and providing other
definitions; providing for notice, hearing, and other procedural requirements;
providing for attorney fees and additional forms of compensation; amending
Minnesota Statutes 2004, sections 117.025; 117.036; 117.055; 117.075,
subdivision 1; 117.085; 117.51; 117.52, subdivision 1, by adding subdivisions;
proposing coding for new law in Minnesota Statutes, chapter 117; repealing
Minnesota Statutes 2004, section 117.011.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
new text begin
[117.012] PREEMPTION; PUBLIC USE OR PURPOSE.
new text end
new text begin Subdivision 1. new text end
new text begin Preemption. new text end
new text begin
Notwithstanding any other provision of law, including
any charter provision, ordinance, statute, or special law, all condemning authorities,
including home rule charter cities and all other political subdivisions of the state, must
exercise the power of eminent domain in accordance with the provisions of this chapter,
including all procedures, definitions, remedies, and limitations. Additional procedures,
remedies, or limitations that do not deny or diminish the substantive and procedural rights
and protections of owners under this chapter may be provided by other law, ordinance,
or charter.
new text end
new text begin Subd. 2. new text end
new text begin Requirement of public use or public purpose. new text end
new text begin
Eminent domain may
only be used for a public use or public purpose.
new text end
new text begin Subd. 3. new text end
new text begin Exceptions. new text end
new text begin
This chapter does not apply to the taking of property under
laws relating to drainage or to town roads when those laws themselves expressly provide
for the taking and specifically prescribe the procedure. The taking of property for a project
undertaken by a watershed district under chapter 103D or for a project undertaken by a
drainage authority under chapter 103E may be carried out under the procedure provided
by those chapters.
new text end
Sec. 2.
Minnesota Statutes 2004, section 117.025, is amended to read:
117.025 DEFINITIONS.
Subdivision 1.
Words, terms, and phrases.
deleted text begin Unless the language or context clearly
indicates that a different meaning is intended,deleted text end new text begin For the purposes of this chapter and any
other general or special law authorizing the exercise of the power of eminent domain, new text end the
words, terms, and phrases defined in this section have the meanings given them.
Subd. 2.
Taking.
new text begin "new text end Takingnew text begin "new text end and all words and phrases of like import include every
interference, under the right of eminent domain, with the possession, enjoyment, or value
of private property.
Subd. 3.
Owner.
"Owner" includes all persons deleted text begin interested in suchdeleted text end new text begin with any interest
in the new text end property new text begin subject to a taking, whether new text end as proprietors, tenants, life estate holders,
encumbrancers, new text begin beneficial interest holders, new text end or otherwise.
new text begin Subd. 4. new text end
new text begin Condemning authority. new text end
new text begin
"Condemning authority" means a person or
entity with the power of eminent domain.
new text end
new text begin Subd. 5. new text end
new text begin Abandoned property. new text end
new text begin
"Abandoned property" means property that: (1) has
been substantially unoccupied or unused for any commercial or residential purpose for at
least one year by a person with a legal or equitable right to occupy the property; (2) has not
been maintained; and (3) for which taxes have not been paid for at least two previous years.
new text end
new text begin Subd. 6. new text end
new text begin Blighted area. new text end
new text begin
"Blighted area" means an area:
new text end
new text begin
(1) that is in urban use; and
new text end
new text begin
(2) where more than 50 percent of the buildings are structurally substandard.
new text end
new text begin Subd. 7. new text end
new text begin Structurally substandard. new text end
new text begin
"Structurally substandard" means a building:
new text end
new text begin
(1) that was inspected by the appropriate local government and cited for one or more
enforceable housing, maintenance, or building code violations;
new text end
new text begin
(2) in which the cited building code violations involve one or more of the following:
new text end
new text begin
(i) a roof and roof framing element;
new text end
new text begin
(ii) support walls, beams, and headers;
new text end
new text begin
(iii) foundation, footings, and subgrade conditions;
new text end
new text begin
(iv) light and ventilation;
new text end
new text begin
(v) fire protection, including egress;
new text end
new text begin
(vi) internal utilities, including electricity, gas, and water;
new text end
new text begin
(vii) flooring and flooring elements; or
new text end
new text begin
(viii) walls, insulation, and exterior envelope;
new text end
new text begin
(3) in which the cited housing, maintenance, or building code violations have not
been remedied after two notices to cure the noncompliance; and
new text end
new text begin
(4) has uncured housing, maintenance, and building code violations, satisfaction
of which would cost more than 50 percent of the assessor's taxable market value for the
building, excluding land value, as determined under section 273.11 for property taxes
payable in the year in which the condemnation is commenced.
new text end
new text begin
A local government is authorized to seek from a judge or magistrate an administrative
warrant to gain access to inspect a specific building in a proposed development or
redevelopment area upon showing of probable cause that a specific code violation has
occurred and that the violation has not been cured, and that the owner has denied the local
government access to the property. Items of evidence that may support a conclusion of
probable cause may include recent fire or police inspections, housing inspection, exterior
evidence of deterioration, or other similar reliable evidence of deterioration in the specific
building.
new text end
new text begin Subd. 8. new text end
new text begin Environmentally contaminated area. new text end
new text begin
"Environmentally contaminated
area" means an area:
new text end
new text begin
(1) in which more than 50 percent of the parcels contain any substance defined,
regulated, or listed as a hazardous substance, hazardous material, hazardous waste, toxic
waste, pollutant, contaminant, or toxic substance, or identified as hazardous to human
health or the environment under state or federal law or regulation; and
new text end
new text begin
(2) for which the estimated costs of investigation, monitoring and testing, and
remedial action or removal, as defined in section 115B.02, subdivisions 16 and 17,
respectively, including any state costs of remedial actions, exceed 100 percent of the
assessor's estimated market value for the contaminated parcel, as determined under section
273.11, for property taxes payable in the year in which the condemnation commenced, or
for which a court of competent jurisdiction has issued an order under law or regulations
adopted by Minnesota or the United States, that clean up or remediation of a contaminated
site occur and the property owner has failed to comply with the court's order within
a reasonable time.
new text end
new text begin Subd. 9. new text end
new text begin Public nuisance. new text end
new text begin
"Public nuisance" means a public nuisance under
section 609.74.
new text end
new text begin Subd. 10. new text end
new text begin Public service corporation. new text end
new text begin
"Public service corporation" means a
utility, as defined by section 116C.52, subdivision 10; gas, electric, telephone, or cable
communications company; cooperative association; natural gas pipeline company; crude
oil, or petroleum products pipeline company; municipal utility; municipality when
operating its municipally owned utilities; joint venture created pursuant to section 452.25
or 452.26; or municipal power or gas agency. Public service corporation also means a
municipality or public corporation when operating an airport under chapter 360 or 473, a
common carrier, a watershed district, or a drainage authority. Public service corporation
also means an entity operating a regional distribution center within an international
economic development zone designated under section 469.322.
new text end
new text begin Subd. 11. new text end
new text begin Public use; public purpose. new text end
new text begin
(a) "Public use" or "public purpose" means,
exclusively:
new text end
new text begin
(1) the possession, occupation, ownership, and enjoyment of the land by the general
public, or by public agencies;
new text end
new text begin
(2) the creation or functioning of a public service corporation; or
new text end
new text begin
(3) mitigation of a blighted area, remediation of an environmentally contaminated
area, reduction of abandoned property, or removal of a public nuisance.
new text end
new text begin
(b) The public benefits of economic development, including an increase in tax base,
tax revenues, employment, or general economic health, do not by themselves constitute
a public use or public purpose.
new text end
Sec. 3.
new text begin
[117.027] CONDEMNATION FOR BLIGHT MITIGATION AND
CONTAMINATION REMEDIATION.
new text end
new text begin Subdivision 1. new text end
new text begin
Buildings that are not structurally substandard in areas of blight
mitigation; feasible alternatives.
new text end
new text begin
In taking property to mitigate blight, a condemning
authority must not take buildings that are not structurally substandard unless there is no
feasible alternative to the taking of the parcels on which the buildings are located in
order to remediate the blight and all possible steps are taken to minimize the taking of
buildings that are not structurally substandard.
new text end
new text begin Subd. 2. new text end
new text begin
Uncontaminated property in environmental contamination
remediation areas; feasible alternatives.
new text end
new text begin
In taking property to remediate environmental
contamination, a condemning authority must not take uncontaminated parcels in the area
unless there is no feasible alternative to the taking of the uncontaminated parcels in order
to complete remediation of the contaminated parcels and all possible steps are taken to
minimize the taking of the uncontaminated parcels.
new text end
new text begin Subd. 3. new text end
new text begin Contribution to condition by developer disallowed. new text end
new text begin
If a developer
involved in the redevelopment of the project area contributed to the blight or environmental
contamination within the project area, the condition contributed to by the developer must
not be used in the determination of blight or environmental contamination.
new text end
Sec. 4.
new text begin
[117.031] ATTORNEY FEES.
new text end
new text begin
(a) If the final judgment or award for damages, as determined at any level in the
eminent domain process, is more than 40 percent greater than the last written offer of
compensation made by the condemning authority prior to the filing of the petition, the
court shall award the owner reasonable attorney fees, litigation expenses, appraisal fees,
other experts fees, and other related costs in addition to other compensation and fees
authorized by this chapter. If the final judgment or award is at least 20 percent, but not
more than 40 percent, greater than the last written offer, the court may award reasonable
attorney fees, expenses, and other costs and fees as provided in this paragraph. The final
judgment or award of damages shall be determined as of the date of taking. No attorney
fees shall be awarded under this paragraph if the final judgment or award of damages
does not exceed $25,000. For the purposes of this section, the "final judgment or award
for damages" does not include any amount for loss of a going concern unless that was
included in the last written offer by the condemning authority.
new text end
new text begin
(b) In any case where the court determines that a taking is not for a public use or
is unlawful, the court shall award the owner reasonable attorney fees and other related
expenses, fees, and costs in addition to other compensation and fees authorized by this
chapter.
new text end
Sec. 5.
Minnesota Statutes 2004, section 117.036, is amended to read:
117.036 APPRAISAL AND NEGOTIATION REQUIREMENTS
deleted text begin APPLICABLE TO ACQUISITION OF PROPERTY FOR TRANSPORTATION
PURPOSESdeleted text end .
Subdivision 1.
Application.
This section applies to the acquisition of property
deleted text begin for public highways, streets, roads, alleys, airports, mass transit facilities, or for other
transportation facilities or purposesdeleted text end new text begin under this chapternew text end .
new text begin Subd. 1a. new text end
new text begin Definition of owner. new text end
new text begin
For the purposes of this section, "owner" means
fee owner, contract purchaser, or business lessee who is entitled to condemnation
compensation under a lease.
new text end
Subd. 2.
Appraisal.
(a) Before commencing an eminent domain proceeding under
this chapter, the acquiring authority must obtain at least one appraisal for the property
proposed to be acquired. In making the appraisal, the appraiser must confer with one or
more of the owners of the property, if reasonably possible. deleted text begin At least 20deleted text end new text begin Notwithstanding
section 13.44, the acquiring authority must provide the owner with a copy of each
appraisal the acquiring authority has obtained for the property at the time an offer is
made, but no later than 60 new text end days before presenting a petition under section 117.055, deleted text begin the
acquiring authority must provide the owner with a copy of the appraisaldeleted text end and inform the
deleted text begin owner of the owner'sdeleted text end new text begin owner of thenew text end right to obtain an appraisal under this section.new text begin Upon
request, the acquiring authority must make available to the owner all appraisals of the
property. If the acquiring authority is considering both a full and partial taking of the
property, the acquiring authority shall obtain and provide the owner with appraisals for
both types of takings.new text end
(b) The owner may obtain an appraisal by a qualified appraiser of the property
proposed to be acquired. The owner is entitled to reimbursement for the reasonable costs
of the appraisal from the acquiring authority up to a maximum of $1,500 deleted text begin within 30 days
after thedeleted text end new text begin for single family and two-family residential property and minimum damage
acquisitions and $5,000 for other types of property, provided that the new text end owner submits to
the acquiring authority the information necessary for reimbursement, deleted text begin provided that the
owner does so within 60 days after the owner receives the appraisal from the authority
under paragraph (a)deleted text end new text begin including a copy of the owner's appraisal,new text end new text begin at least five days before
a condemnation commissioners' hearing. For purposes of this paragraph, a "minimum
damage acquisition" means an interest in property that a qualified person with appraisal
knowledge indicates can be acquired for a cost of $10,000 or less.
new text end
new text begin (c) The acquiring authority must pay the reimbursement to the owner within 30
days after receiving a copy of the appraisal and the reimbursement information. Upon
agreement between the acquiring authority and the owner, the acquiring authority may pay
the reimbursement directly to the appraisernew text end .
Subd. 3.
Negotiation.
In addition to the appraisal requirements under subdivision 2,
before commencing an eminent domain proceeding, the acquiring authority must make a
good faith attempt to negotiate personally with the owner of the property in order to
acquire the property by direct purchase instead of the use of eminent domain proceedings.
In making this negotiation, the acquiring authority must consider the appraisals in its
possessionnew text begin , including any appraisal obtained and furnished by the owner if available,new text end
and other information that may be relevant to a determination of damages under this
chapter. new text begin If the acquiring authority is considering both a full and partial taking of the
property, the acquiring authority must make a good-faith attempt to negotiate with respect
to both types of takings.
new text end
new text begin Subd. 4. new text end
new text begin Use of appraisal at commissioners' hearing. new text end
new text begin
An appraisal must not be
used or considered in a condemnation commissioners' hearing, nor may the appraiser who
prepared the appraisal testify, unless a copy of the appraiser's written report is provided to
the opposing party at least five days before the hearing.
new text end
new text begin Subd. 5. new text end
new text begin Documentation of business loss. new text end
new text begin
Documentation related to a loss of
going concern claim made under section 117.186, must not be used or considered in
a condemnation commissioners' hearing unless the documentation is provided to the
opposing party at least 14 days before the hearing.
new text end
Sec. 6.
new text begin
[117.0412] LOCAL GOVERNMENT PUBLIC HEARING
REQUIREMENTS.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
For the purposes of this section:
new text end
new text begin
(1) "local government" means the elected governing body of a statutory or home
rule charter city, county, or township; and
new text end
new text begin
(2) "local government agency" means a subdivision, agency, authority, or other
entity created by or whose members are appointed by the local government, including a
port authority, economic development authority, housing and redevelopment authority, or
other similar entity established under law.
new text end
new text begin Subd. 2. new text end
new text begin Public hearing; vote by local government governing body. new text end
new text begin
(a) If
the taking is for the mitigation of a blighted area, remediation of an environmentally
contaminated area, reducing abandoned property, or removing a public nuisance, a public
hearing must be held before a local government or local government agency commences
an eminent domain proceeding under section 117.055. The local government must
notify each owner of property that may be acquired in writing by certified mail of the
public hearing on the proposed taking, post the public hearing information on the local
government's Web site, if any, and publish notice of the public hearing in a newspaper
of general circulation in the local government's jurisdiction. Notice must be provided at
least 30 days but not more than 60 days before the hearing.
new text end
new text begin
(b) Any interested person must be allowed reasonable time to present relevant
testimony at the public hearing. The proceedings of the hearing must be recorded and
available to the public for review and comment at reasonable times and a reasonable place.
At the next regular meeting of the local government that is at least 30 days after the public
hearing, the local government must vote on the question of whether to authorize the local
government or local government agency to use eminent domain to acquire the property.
new text end
new text begin Subd. 3. new text end
new text begin Resolution. new text end
new text begin
If the taking is for the mitigation of a blighted area,
remediation of an environmentally contaminated area, reducing abandoned property, or
removing a public nuisance, then the resolution of a local government or local government
agency authorizing the use of eminent domain must:
new text end
new text begin
(1) identify and describe the public costs and benefits that are known or expected
to result from the program or project for which the property interest is proposed to be
acquired; and
new text end
new text begin
(2) address how the acquisition of the property interest serves one or more identified
public uses or public purposes and why the acquisition of the property is needed to
accomplish those public uses or public purposes.
new text end
Sec. 7.
Minnesota Statutes 2004, section 117.055, is amended to read:
117.055 PETITION AND NOTICE.
new text begin Subdivision 1. new text end
new text begin Petition. new text end
In all cases a petition, describing the desired land, stating by
whom and for what purposes it is proposed to be taken, and giving the names of all persons
appearing of record or known to the petitioner to be the owners thereof shall be presented
to the district court of the county in which the land is situated praying for the appointment
of commissioners to appraise the damages which may be occasioned by such taking.
new text begin Subd. 2. new text end
new text begin Notice. new text end
new text begin (a) new text end Notice of the objects of the petition and of the time and place of
presenting the same shall be served at least 20 days before such time of presentation upon
all persons named in the petition as owners as defined in section 117.025, subdivision 3,
and upon all occupants of such land in the same manner as a summons in a civil action.
new text begin
(b) The notice must state that:
new text end
new text begin
(1) a party wishing to challenge the public use or public purpose, necessity, or
authority for a taking must appear at the court hearing and state the objection or must
appeal within 60 days of a court order; and
new text end
new text begin
(2) a court order approving the public use or public purpose, necessity, and authority
for the taking is final unless an appeal is brought within 60 days after service of the
order on the party.
new text end
new text begin (c) new text end If any such owner be not a resident of the state, or the owner's place of residence
be unknown to the petitioner, upon the filing of an affidavit of the petitioner or the
petitioner's agent or attorney, stating that the petitioner believes that such owner is not
a resident of the state, and that the petitioner has mailed a copy of the notice to the
owner at the owner's place of residence, or that after diligent inquiry the owner's place
of residence cannot be ascertained by the affiant, then service may be made upon such
owner by three weeks' published notice. If the state be an owner, the notice shall be
served upon the attorney general. Any owner not served as herein provided shall not be
bound by such proceeding except upon voluntarily appearing therein. Any owner shall
be furnished a right-of-way map or plat of all that part of land to be taken upon written
demand, provided that the petitioner shall have ten days from the receipt of the demand
within which to furnish the same. Any plans or profiles which the petitioner has shall be
made available to the owner for inspection.
Sec. 8.
Minnesota Statutes 2004, section 117.075, subdivision 1, is amended to read:
Subdivision 1.
Hearing on takingnew text begin ; evidentiary standardnew text end .
new text begin (a) new text end Upon proof being
filed of the service of such notice, the court, at the time and place therein fixed or to which
the hearing may be adjourned, shall hear all competent evidence offered for or against the
granting of the petition, regulating the order of proof as it may deem best.
new text begin
(b) If the taking is for the mitigation of a blighted area, remediation of an
environmentally contaminated area, reducing abandoned property, or removing a
public nuisance, then, notwithstanding any other provision of general or special law, a
condemning authority must show the district court by preponderance of the evidence that
the taking is necessary and for the designated public use.
new text end
new text begin
(c) A court order approving the public use or public purpose, necessity, and authority
for the taking is final unless an appeal is brought within 60 days after service of the
order on the party.
new text end
Sec. 9.
Minnesota Statutes 2004, section 117.085, is amended to read:
117.085 COMMISSIONERS, POWERS, DUTIES.
The commissioners, having been duly sworn and qualified according to law, shall
meet as directed by the order of appointment and hear the allegations and proofs of all
persons interested touching the matters to them committed. They may adjourn from time
to time and from place to place within the county, giving oral notice to those present of
the time and place of their next meeting. All testimony taken by them shall be given
publicly, under oath, and in their presence. They shall view the premises, and any of
them may subpoena witnesses, which shall be served as subpoenas in civil actions are
served, and at the cost of the parties applying therefor. If deemed necessary, they may
require the petitioner or owner to furnish for their use maps, plats, and other information
which the petitioner or owner may have showing the nature, character, and extent of the
proposed undertaking and the situation of lands desired therefor. In proper cases they
may reserve to the owner a right-of-way or other privilege in or over the land taken, or
attach reasonable conditions to such taking in addition to the damages given or they may
make an alternative award, conditioned upon the granting or withholding of the right
specified. Without unreasonable delay they shall make a separate assessment and award
of the damages which in their judgment will result to each of the owners of the land by
reason of such taking and report the same to the court. The commissioners shall not
reduce the amount of the damages awarded because the land being taken is, at the time
of the taking, valued under section 273.111, designated as an agricultural preserve under
chapter 473H. The commissioners, in all such proceedings, may in their discretion allow
and show separately in addition to the award of damages, reasonable appraisal fees not to
exceed a total of deleted text begin $500deleted text end new text begin $1,500 for single family and two-family residential property and
minimum damage acquisitions and $5,000 for other types of property, unless the appraised
fee was reimbursed under section 117.036new text end . Upon request of an owner the commissioners
shall show in their report the amount of the award of damages which is to reimburse the
owner and tenant or lessee for the value of the land taken, and the amount of the award of
damages, if any, which is to reimburse the owner and tenant or lessee for damages to the
remainder involved, whether or not described in the petition. The amounts awarded to
each person shall also be shown separately. The commissioners shall, if requested by any
party, make an express finding of the estimated cost of removal and remedial actions that
will be necessary on the taken property because of existing environmental contamination.
Sec. 10.
new text begin
[117.184] COMPENSATION FOR REMOVAL OF LEGAL
NONCONFORMING USE.
new text end
new text begin
(a) Notwithstanding any law to the contrary, an ordinance or regulation of a political
subdivision of the state or local zoning authority that requires the removal of a legal
nonconforming use as a condition or prerequisite for the issuance of a permit, license, or
other approval for any use, structure, development, or activity constitutes a taking and
is prohibited without the payment of just compensation. This section does not apply if
the permit, license, or other approval is requested for the construction of a building or
structure that cannot be built without physically moving the nonconforming use.
new text end
new text begin
(b) This section applies to an action of a political subdivision of the state or a local
zoning authority occurring on or after the effective date of this act that requires removal
of a legal nonconforming use as a condition or prerequisite for the issuance of a permit,
license, or other approval.
new text end
Sec. 11.
new text begin
[117.186] COMPENSATION FOR LOSS OF GOING CONCERN.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
For purposes of this section:
new text end
new text begin
(1) "going concern" means the benefits that accrue to a business or trade as a result
of its location, reputation for dependability, skill or quality, customer base, good will, or
any other circumstances resulting in the probable retention of old or acquisition of new
patronage; and
new text end
new text begin
(2) "owner" has the meaning given in section 117.025 and includes a lessee who
operates a business on real property that is the subject of an eminent domain proceeding.
new text end
new text begin Subd. 2. new text end
new text begin Compensation for loss of going concern. new text end
new text begin
If a business or trade is
destroyed by a taking, the owner shall be compensated for loss of going concern, unless the
condemning authority establishes any of the following by a preponderance of the evidence:
new text end
new text begin
(1) the loss is not caused by the taking of the property or the injury to the remainder;
new text end
new text begin
(2) the loss can be reasonably prevented by relocating the business or trade in the
same or a similar and reasonably suitable location as the property that was taken, or by
taking steps and adopting procedures that a reasonably prudent person of a similar age
and under similar conditions as the owner, would take and adopt in preserving the going
concern of the business or trade; or
new text end
new text begin
(3) compensation for the loss of going concern will be duplicated in the
compensation otherwise awarded to the owner.
new text end
new text begin Subd. 3. new text end
new text begin Procedure. new text end
new text begin
In all cases where an owner will seek compensation for loss
of a going concern, the damages, if any, shall in the first instance be determined by the
commissioners under section 117.105 as part of the compensation due to the owner. The
owner shall notify the condemning authority of the owner's intent to claim compensation
for loss of going concern within 60 days of the first hearing before the court, as provided
in section 117.075. The commissioner's decision regarding any award for loss of going
concern may be appealed by any party, in accordance with section 117.145.
new text end
new text begin Subd. 4. new text end
new text begin Driveway access. new text end
new text begin
A business owner is entitled to reasonable compensation,
not to exceed the three previous years' revenues minus the cost of goods sold, if the
owner establishes that the actions of a government entity permanently eliminated 51
percent or greater of the driveway access into and out of a business and as a result of the
loss of driveway access, revenue at the business was reduced by 51 percent or greater.
Determination of whether the revenue at the business was reduced by 51 percent or greater
must be based on a comparison of the average revenues minus the average costs of goods
sold for the three years prior to commencement of the project, with the revenues minus
the costs of goods sold for the year following completion of the project. A claim for
compensation under this section must be made no later than one year after completion of
the project which eliminated the driveway access. The installation of a median does not
constitute elimination of driveway access.
new text end
Sec. 12.
new text begin
[117.187] MINIMUM COMPENSATION.
new text end
new text begin
When an owner must relocate, the amount of damages payable, at a minimum, must
be sufficient for an owner to purchase a comparable property in the community and not
less than the condemning authority's payment or deposit under section 117.042, to the
extent that the damages will not be duplicated in the compensation otherwise awarded
to the owner of the property. For the purposes of this section, "owner" is defined as the
person or entity that holds fee title to the property.
new text end
Sec. 13.
new text begin
[117.188] LIMITATIONS.
new text end
new text begin
The condemning authority must not require the owner to accept as part of the
compensation due any substitute or replacement property. The condemning authority
must not require the owner to accept the return of property acquired or any portion of the
property.
new text end
Sec. 14.
new text begin
[117.189] PUBLIC SERVICE CORPORATION EXCEPTIONS.
new text end
new text begin
Sections 117.031; 117.036; 117.055, subdivision 2, paragraph (b); 117.186; 117.187;
117.188; and 117.52, subdivisions 1a and 4, do not apply to public service corporations.
For purposes of an award of appraisal fees under section 117.085, the fees awarded may
not exceed $500 for all types of property.
new text end
Sec. 15.
new text begin
[117.226] RIGHT OF FIRST REFUSAL.
new text end
new text begin
(a) Except as provided in sections 15.16, 160.85, 161.16, 161.20, 161.202, 161.23,
161.24, 161.241, 161.43, 161.46, and 222.63, if the governing body of the condemning
authority determines that publicly owned property acquired under this chapter has not
been used and is no longer needed for a public use, the authority must offer to sell the
property to the owner from whom it was acquired, if the former owner can be located. The
offer must be at the original price determined by the condemnation process or the current
fair market value of the property, whichever is lower, except to the extent that a different
value is required for a property interest obtained with federal highway funding under
United States Code, title 23. Before offering surplus property to local governments or for
public sale under section 16B.282 or 94.10, the commissioner of administration or natural
resources must offer to sell the property to the former owner as provided in this section.
new text end
new text begin
(b) If the former owner cannot be located after a due and diligent search or declines
to repurchase the property, the attorney for the condemning authority shall prepare a
certificate attesting to the same and record the certificate in the office of the county
recorder or county registrar of titles, as appropriate, to evidence the termination of the
right of first refusal. A recorded certificate to that effect is prima facie evidence that the
right of first refusal has terminated.
new text end
Sec. 16.
Minnesota Statutes 2004, section 117.51, is amended to read:
117.51 COOPERATION WITH FEDERAL AUTHORITIES.
In all acquisitions undertaken by any acquiring authority and in all voluntary
rehabilitation carried out by a person pursuant to acquisition or as a consequence thereof,
the acquiring authority shall cooperate to the fullest extent with federal departments and
agencies, and it shall take all necessary action in order to insure, to the maximum extent
possible, federal financial participation in any and all phases of acquisition, including the
provision of relocation assistance, services, payments and benefits to displaced persons.
deleted text begin An acquiring authority may consider reimbursing up to $50,000 in reestablishment
expenses of a displaced business.
deleted text end
Sec. 17.
Minnesota Statutes 2004, section 117.52, subdivision 1, is amended to read:
Subdivision 1.
Lack of federal funding.
In all acquisitions undertaken by any
acquiring authority and in all voluntary rehabilitation carried out by a person pursuant
to acquisition or as a consequence thereof, in which, due to the lack of federal financial
participation, relocation assistance, services, payments and benefits under the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, United States
Code, title 42, sections 4601 to 4655, as amended by the Surface Transportation and
Uniform Relocation Assistance Act of 1987, Statutes at Large, volume 101, pages 246
to 256 (1987), are not available, the acquiring authority, as a cost of acquisition, shall
provide all relocation assistance, services, payments and benefits required by the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended by
the Surface Transportation and Uniform Relocation Assistance Act of 1987, and those
regulations adopted pursuant thereto, and either (1) in effect as of deleted text begin July 1, 1988deleted text end new text begin January 1,
2006new text end , or (2) becoming effective after deleted text begin July 1, 1988deleted text end new text begin January 1, 2006new text end , following a public
hearing and comment. Comments received by an acquiring authority within 30 days after
the public hearing must be reviewed and a written response provided to the individual or
organization who initiated the comment. The response and comments may be addressed in
another public hearing by the acquiring authority before approval.
Sec. 18.
Minnesota Statutes 2004, section 117.52, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Reestablishment costs limit. new text end
new text begin
For purposes of relocation benefits paid by
the acquiring authority in accordance with this section, the provisions of Code of Federal
Regulations, title 49, section 24.304, with respect to reimbursement of reestablishment
expenses for nonresidential moves are applicable, except that the acquiring authority shall
reimburse the displaced business for expenses actually incurred up to a maximum of
$50,000.
new text end
Sec. 19.
Minnesota Statutes 2004, section 117.52, is amended by adding a subdivision
to read:
new text begin Subd. 4. new text end
new text begin
Relocation assistance amount determined by administrative law
judge.
new text end
new text begin
Notwithstanding any law or rule to the contrary, if a person entitled to relocation
assistance under this section does not accept the acquiring authority's offer, the acquiring
authority must initiate contested case proceedings under sections 14.57 to 14.66 for a
determination of the relocation assistance that must be provided by the acquiring authority.
The administrative law judge's determination of relocation assistance that the acquiring
authority must provide constitutes a final decision in the case, as provided in section 14.62,
subdivision 4. The acquiring authority must pay all costs of the proceedings. "Costs" is
defined in section 15.471, subdivision 4, and also includes charges billed by the Office of
Administrative Hearings for the proceedings.
new text end
Sec. 20. new text begin REVISOR'S INSTRUCTION.
new text end
new text begin
The revisor shall change the phrase "right of eminent domain" where found in
Minnesota Statutes and Minnesota Rules to "power of eminent domain."
new text end
Sec. 21. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2004, section 117.011,
new text end
new text begin
is repealed.
new text end
Sec. 22. new text begin EFFECTIVE DATE.
new text end
new text begin
(a) This act is effective the day following final enactment and applies to actions
commenced on or after that date. Section 15 applies to the disposition of property acquired
by actions commenced on or after that date.
new text end
new text begin
(b) Notwithstanding paragraph (a), the provisions of this act do not apply to actions
commenced on or before February 1, 2008, for a project that satisfies one of the following
conditions:
new text end
new text begin
(1) with respect to property identified as intended to be acquired in a tax increment
financing plan, as approved by the municipality by February 1, 2006, if the condemning
authority has satisfied one or more of the following conditions in connection with the tax
increment financing plan:
new text end
new text begin
(i) the developer has acquired property by May 1, 2006, in reliance on the
condemning authority's contractual obligation to condemn property; or
new text end
new text begin
(ii) by May 1, 2006, the condemning authority has issued, sold, or entered into a
binding agreement to issue or sell bonds or other obligations to finance the costs of the
tax increment financing plan and has commenced the action within two years after the
bonds were issued;
new text end
new text begin
(2) the tax increment financing district was certified before February 1, 2006; a tax
increment financing plan, adopted before February 1, 2006, identified the property as
intended to be acquired; and the condemning authority has commenced the action within
five years after certification of the district;
new text end
new text begin
(3) creation of the tax increment financing district was authorized under a special
law that received local approval or became effective without local approval before
February 1, 2006, and the condemning authority commences the action within the time
period permitted under the applicable general or special law for making expenditures to
comply with Minnesota Statutes, section 469.1763, subdivision 3, but not to exceed a
ten-year period; or
new text end
new text begin
(4) the condemning authority commences the action before February 1, 2011, to
complete land assembly for a project, financed in whole or in part with abatement under
Minnesota Statutes, sections 469.1813 to 469.1815, and the abatement resolution was
adopted by one of the participating political subdivisions before February 1, 2006.
new text end
new text begin
(c) Notwithstanding paragraphs (a) and (b), actions commenced after February 1,
2008, that satisfy the requirements of paragraph (b), clauses (1) to (4), are not subject to
the definition of "public use" and "public purpose" under Minnesota Statutes, section
117.025, as amended by this act. The rest of the act applies to the actions.
new text end
new text begin
(d) The definitions under Minnesota Statutes, section 469.174, apply for purposes
of paragraphs (b) and (c).
new text end
new text begin
(e) The provisions of this act do not apply to:
new text end
new text begin
(1) property acquired for a highway project that, by the effective date, has been
selected to receive federal funding by the area transportation partnership or metropolitan
planning organization as part of the state transportation improvement program, if the
action is commenced on or before January 15, 2007; or
new text end
new text begin
(2) property acquired for the purpose of providing physical or financial assistance for
emergency shelter and services for homeless persons in a first class city by a governmental
unit or nonprofit organization, if the action is commenced on or before two years after
the effective date.
new text end
new text begin
(f) For purposes of this section, the following terms have the meanings given:
new text end
new text begin
(1) "action" means a condemnation or eminent domain proceeding or action; and
new text end
new text begin
(2) "commence" means when service of notice of the petition under Minnesota
Statutes, section 117.055, is made.
new text end